Construction Loans

The Flexibility to Buy Now and Build Later

If you want to buy land today, and build now or in the future, you can take out a Business Construction Loan from VSECU to purchase your land. The land or lot must pass a perc test, and cannot exceed 25 acres. If you choose to wait and build later, you will pay monthly mortgage payments on the land with a fixed monthly payment for three years and then the rate may adjust annually thereafter.

Ready to Start Building?

When you’re ready to start building, you will need to hire a general contractor and provide us with a copy of an estimated appraisal. Your down payment will go into your project prior to any loan disbursements. After the construction loan period is completed we can refinance your loan into one of our traditional mortgage loans.

  • Hire a general contractor who can provide us with a contract, blueprints, copies of permits, a description of materials to be used and proof of insurance.
  • You cannot act as the general contractor.
  • We will automatically factor in an overrun cost of 5% to construction costs.
  • Sewage systems must be designed by a professional engineer registered with the state of Vermont.
  • Up to six physical inspections will be made during the construction phase by a qualified appraiser.
  • We will disburse funds at the completion of each stage of construction.


Please contact us for rates.

Apply for a Business Construction Loan

VSECU can help you determine the best financing option for your business. Listed below is the documentation needed to expedite your business loan request:

  • A completed, signed and dated Business Loan Application
  • Current signed Personal Financial Statement for each principal, owner or guarantor on the loan
  • Business tax returns (all schedules) and/or financials statement for the last 3 years
  • Personal tax returns (all schedules) or each principal, owner or guarantor of the loan for the last 3 years
  • Current business financial statement (balance sheet and income statement)

To schedule an appointment, please contact Scott Nichols, Business Lending Manager, at 802-371-3104 or